Chairman Chabot Opening Statement
Full Committee Hearing: Contracting and the Industrial Base

Prepared for Delivery

WASHINGTON -- Small Business Committee Chairman Steve Chabot (R-OH) opened today's full committee hearing on Contracting and the Industrial Base with the following statement:

"Good morning. I call this hearing to order.  I’m happy to be here today, as this is my first hearing as Chairman, although I’ve participated as a Member of the Small Business Committee for many years.  Today, we begin the good work of helping our small businesses, and I’m particularly pleased to start that endeavor by discussing a subject that has much promise for small businesses and taxpayers alike – federal contracting reform. 

"As you know, the federal government has a goal of awarding at least 23 percent of federal prime contract dollars to small businesses, and in Fiscal Year 2013 that goal was met for the first time in many years. Early indications are that the goal was met again last year.  However, it isn’t enough to simply meet the goal – we have to focus on why Congress created the goals.  The goals exist as a tool – they are intended to make sure we have a broad spectrum of small businesses working with the government across industries.

"Having a healthy small business industrial base means that taxpayers benefit from increased competition, innovation, and job creation.  It also means that we can securely support programs crucial to our national defense.  The percentage of dollars awarded to small businesses is a good measure of success, but it isn’t the only measure. 

"Indeed, it appears that over the last four years, while the percentage of dollars being awarded to small businesses was increasing, the number of contract actions with small businesses fell by almost 60 percent. 

"At the Department of Defense (DoD), the number fell by almost 70 percent.  The size of the average individual small business contract action increased by 230 percent during that same period, and by nearly 290 percent at DoD. 

"These statistics are all alarming in their own way, but one of the more clear-cut and disturbing figures is that there are over 100,000 fewer small businesses registered to do business with federal government than there were in 2012.  These data points suggest we have a problem with our small business industrial base.

"Today’s witnesses are going to address specific recommendations to improve the competitive viability of our small business contractors.  This is only the first of a series of full committee and subcommittee hearings we’ll be having on this topic.  I expect that the Committee will actively pursue ways to increase opportunities for small businesses to access capital and contracts, while removing barriers to small business success.  I look forward to working with each of you, and want to welcome our witnesses. 

"I now yield to the Ranking Member for her opening statement." 

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